IL Offers Help to Homeowners as Foreclosure Moratorium is Extended

 Posted on August 27, 2020 in Foreclosure

In March of this year, the U.S. Department of Housing and Urban Development (HUD) issued a moratorium on foreclosures for all single-family mortgages insured by the Federal Housing Administration (FHA). The moratorium was in response to the anticipated financial effects of the COVID-19 pandemic on households across the country. The move was shortly followed by a similar directive from the Federal Housing Financial Agency (FHFA), which ordered the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Company (Freddie Mac) to suspend foreclosures for at least 60 days.

Shortly thereafter, federal lawmakers passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide financial assistance to millions of American families. In the months that followed, the foreclosure moratoriums were extended several times. Though they are set to end on August 31, 2020, in Chicago, Gov. Pritzker has extended the moratorium to last an additional 30 days. However, the financial assistance offered by the CARES Act already expired earlier this month, leaving many Illinois residents wondering if there is any other help available.

Lake County Offers Renters’ Assistance

For those who rent their homes, several agencies in Lake County have established programs to provide assistance with rent, food, and utility bills. Community Partners for Affordable Housing and other groups say that their programs are open to county residents who have been financially affected by the pandemic. Those who have lost their job, have reduced income, or unexpected expenses related to COVID-19 are allowed to apply, though income and savings limits could affect an applicant’s eligibility for aid. For those who are approved for rent assistance, the funds are paid to their landlords directly.

State Aid for Homeowners

While the renters’ assistance programs are being run on the county level, the Illinois Housing Development Authority (IHDA) is offering a mortgage assistance program. According to IHDA officials, the program may provide homeowners with as much as $15,000 to catch up delinquent mortgage payments. These payments may include escrowed insurance and property taxes.

To be eligible, an applicant’s mortgage must be $425,000 or less, and the loan must have been current prior to March 1, 2020. The IHDA says the program is intended for homeowners who were directly affected by the coronavirus crisis. Applications for emergency mortgage assistance are available at the IHDA website: www.ema.ihda.org.

Contact a Lake County Foreclosure Prevention Attorney

At Newland & Newland, LLP., we understand that the COVID-19 pandemic has affected homeowners throughout the region and across the country. If you are behind on your mortgage and are wondering about your options for avoiding foreclosure, contact one of our experienced Libertyville foreclosure defense lawyers today. Call 847-549-0000 for a free consultation.

Sources:

https://www.chicagotribune.com/suburbs/lake-county-news-sun/ct-lns-eviction-assistance-st-0817-20200814-5r32kcjztzd5thcofwx3uhmd6m-story.html

https://www.hud.gov/sites/dfiles/OCHCO/documents/2020-13hsngml.pdf

https://www.ihda.org/about-ihda/covid-19-housing-resources-information/

https://abc7chicago.com/illinois-eviction-moratorium-chicago-rent-jb-pritzker/6380874/